When I first read of Columbia Community CU's conversion to a state-chartered mutual bank, I assumed that the credit union was struggling to survive in a competitive environment or that the credit union needed to increase its business lending beyond NCUA guidelines to survive or that there was some other compelling, dire financial reason. Has anyone looked at the financial situation of Columbia Community? I have. Here are the five-year averages of this credit union that needs to convert to a bank in order to survive.
Averages over the period 1998 – 2002
Asset Growth
16.61%
Loan Growth
16.01%
Share Growth
16.75%
ROA
1.24%
Loan to share
81.20%
Delinquent Loans
.44%
Size in Dec. 1998
$301 million
Current size in Dec. 2002
$539 million
Current Capital
9.44%
Total Capital
$51 Million By any financial measure this appears to be a very successful credit union!!! The members revolting against this conversion are right. This is their credit union and clearly, judging by these financial numbers, a very successful credit union. The management and board of directors should be proud of their accomplishments at Columbia Community Credit Union. However, if they no longer feel that they can compete effectively as a credit union they should step aside and allow a new group of credit union professionals to carry on their work at Columbia Community as a credit union. I guarantee that there would be a long line of very well qualified credit union leaders who would see a strong future as a viable credit union for Columbia Community Credit Union. A conversion vote won by the slimmest of margins with only less than 10% of the actual membership approving conversion hardly qualifies as overwhelming support among the membership. If these credit union leaders want to be bankers, they should leave their credit union, go out and raise the Capital necessary to start a de novo bank and become bankers. They should not use the capital built up by more than 50 years of cooperative membership to fund their new bank! Ed Daley CEO San Diego Firefighters FCU San Diego, Calif.
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